Skip to main content

Arbitrum

Layer 2 scaling solution for Ethereum.

About Arbitrum​

Arbitrum is a leading Layer 2 scaling solution for Ethereum, designed to enhance transaction speed and reduce costs while maintaining Ethereum's security. Developed by Offchain Labs, it utilizes optimistic rollup technology to batch transactions off-chain before submitting them to Ethereum. Key products include:

  • Arbitrum One: Mainnet for decentralized applications (dApps)
  • Arbitrum Orbit: Permissionless framework for launching custom Layer 3 chains
  • Stylus: Multi-language smart contract environment (Rust, C, C++)

As the largest Ethereum Layer 2 by Total Value Locked (TVL), Arbitrum hosts 500+ dApps and processes ~10x more transactions than Ethereum mainnet at <1% of the cost. Its ecosystem spans DeFi, NFTs, gaming, and enterprise solutions.

Technology​

Arbitrum's core innovations include:

  1. Optimistic Rollups: Batches transactions off-chain, assuming validity unless challenged via fraud proofs.
  2. Nitro Stack: WASM-based virtual machine improving compatibility and performance.
  3. Multi-Round Fraud Proofs: Enables trustless validation through interactive dispute resolution.
  4. EVM+ Compatibility: Executes Ethereum contracts unmodified while adding custom precompiles.
  5. AnyTrust Channels: Dedicated throughput with validator committees for enterprise use cases.

This architecture solves Ethereum's scalability trilemma by achieving 40,000 TPS while inheriting Ethereum's security. The Arbitrum DAO (governed by ARB token holders) oversees protocol upgrades and treasury management.

Key Features​

  • EVM+ Bytecode Compatibility: Run Ethereum contracts without modifications
  • Sub-Cent Transaction Fees: 90-95% cheaper than Layer 1 Ethereum
  • Stylus Multi-VM: Deploy Rust/C++ contracts interoperable with Solidity
  • Cross-Chain Messaging: Native bridge supporting ETH/ERC-20 transfers
  • Onchain Privacy: Integration with ZK-proof systems via partnership with Aztec
  • Decentralized Sequencing: MEV-resistant transaction ordering
  • Gasless Relays: Meta-transactions sponsored by dApps

Integration with Eliza​

OS
ElizaOS leverages Arbitrum's MultiVM architecture for AI agent deployment:

  • Stylus Integration: AI agents execute Rust-based smart contracts natively GitHub: @elizaos/plugin-evm
  • Onchain Actions: Agents perform token swaps/transfers via prebuilt EVM plugin workflows
  • Funding Programs: $1M+ Trailblazer grants for AI agent development on Arbitrum
  • ZK Co-Processor: Collaborative Layer 3 with Zypher Network for verifiable AI inferences

Technical synergy enables:

  • Real-time agent interactions with DeFi protocols
  • RAG-enhanced transaction memory across Orbit chains
  • Batch transaction processing via Nitro's compression engine

Recent Developments​

(2024-2025)

  • Q1 2025: Launched Stylus 2.0 with Python support
  • March 2025: ElizaOS partnership announcement with $2M joint grant pool
  • April 2025: "Road to Devcon" Asian expansion targeting Seoul/Singapore developer communities
  • Upcoming: Arbitrum Nova 2.0 upgrade (50% fee reduction)
  • Governance: ARB token holders approved 50M ARB allocation for AI ecosystem grants

Market Position​

  • TVL: $18.7B (56% of all rollup TVL)
  • Competitors: Optimism (22% market share), zkSync Era (13%), Polygon zkEVM (9%)
  • Key Partners: Chainlink, Lido, Uniswap, The Graph, and 30+ blockchain foundations
  • Adoption: 12.4M monthly active wallets, 150+ institutional validators